Switzerland’s government slashed its inflation forecasts, a move in line with expectations that the central bank will cut interest rates again when officials meet next week.

The Bank of Canada's governing council was split on the outlook for inflation ahead of its Sept 4 decision to cut rates for the third time in a row, minutes published on Wednesday showed. The BoC said on Sept 4 that it was juggling the impact of two opposing forces on inflation - the persistently high cost of shelter and services on one hand and a weakening economy and rising unemployment on the other.

The Bank of Canada’s No. 2 official says inflation returning to 2% in August is welcome news for policymakers, who are now increasingly focused on downside risks and spurring economic growth.

UK inflation rate remained unchanged last month, as air fares rose and petrol prices dropped, but underlying inflation has risen

British inflation held steady in August but sped up in the services sector which is closely watched by the Bank of England, data showed on Wednesday, adding to bets that the central bank will keep interest rates on hold on Thursday.

Inflation in the U.K. held steady at an annual rate of 2.2% in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday. The latest reading from the Office of National Statistics means inflation remains just above the Bank of England's target of 2%.

British inflation stood at an annual rate of 2.2% in August, unchanged from July, official figures showed on Wednesday. A Reuters poll of economists had forecast annual consumer price inflation would remain at 2.